[Congressional Record (Bound Edition), Volume 150 (2004), Part 5]
[Senate]
[Pages 6918-6927]
[From the U.S. Government Publishing Office, www.gpo.gov]




               FEDERAL WORKFORCE FLEXIBILITY ACT OF 2003

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 428, S. 129.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 129) to provide for reform relating to Federal 
     employment, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Governmental Affairs, 
with an amendment to strike all after the enacting clause and insert in 
lieu thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                 S. 129

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     [SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       [(a) Short Title.--This Act may be cited as the ``Federal 
     Workforce Flexibility Act of 2003''.

[[Page 6919]]

       [(b) Table of Contents.--The table of contents of this Act 
     is as follows:

[Sec. 1. Short title; table of contents.

        [TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

[Sec. 101. Streamlined personnel management demonstration projects.
[Sec. 102. Effective date.

    [TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

[Sec. 201. Recruitment, relocation, and retention bonuses.
[Sec. 202. Streamlined critical pay authority.
[Sec. 203. Civil service retirement system computation for part-time 
              service.
[Sec. 204. Corrections relating to pay administration.

[TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

[Sec. 301. Agency training.
[Sec. 302. Annual leave enhancements.

        [TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

     [SEC. 101. STREAMLINED PERSONNEL MANAGEMENT DEMONSTRATION 
                   PROJECTS.

       [Chapter 47 of title 5, United States Code, is amended--
       [(1) in section 4701--
       [(A) in subsection (a)--
       [(i) by striking ``(a)'';
       [(ii) by striking paragraph (1) and inserting the 
     following:
       [``(1) `agency' means an Executive agency and any entity 
     that is subject to any provision of this title that could be 
     waived under section 4703, but does not include--
       [``(A) the Federal Bureau of Investigation, the Central 
     Intelligence Agency, the Defense Intelligence Agency, the 
     National Imagery and Mapping Agency, the National Security 
     Agency, and, as determined by the President, any Executive 
     agency or unit thereof which is designated by the President 
     and which has as its principal function the conduct of 
     foreign intelligence or counterintelligence activities; or
       [``(B) the General Accounting Office;'';
       [(iii) in paragraph (4), by striking ``and'' at the end;
       [(iv) by redesignating paragraph (5) as paragraph (6); and
       [(v) by inserting after paragraph (4) the following:
       [``(5) `modification' means a significant change in 1 or 
     more of the elements of a demonstration project plan as 
     described in section 4703(b)(1); and''; and
       [(B) by striking subsection (b); and
       [(2) in section 4703--
       [(A) in subsection (a)--
       [(i) by striking ``conduct and evaluate demonstration 
     projects'' and inserting ``conduct, modify, and evaluate 
     demonstration projects'';
       [(ii) by striking ``, including any law or regulation 
     relating to--'' and all that follows and inserting a period; 
     and
       [(iii) by adding at the end the following: ``The decision 
     to initiate or modify a project under this section shall be 
     made by the Office.'';
       [(B) by striking subsection (b) and inserting the 
     following:
       [``(b) Before conducting or entering into any agreement or 
     contract to conduct a demonstration project, the Office shall 
     ensure--
       [``(1) that each project has a plan which describes--
       [``(A) its purpose;
       [``(B) the employees to be covered;
       [``(C) its anticipated outcomes and resource implications, 
     including how the project relates to carrying out the 
     agency's strategic plan, including meeting performance goals 
     and objectives, and accomplishing its mission;
       [``(D) the personnel policies and procedures the project 
     will use that differ from those otherwise available and 
     applicable, including a specific citation of any provisions 
     of law, rule, or regulation to be waived and a specific 
     description of any contemplated action for which there is a 
     lack of specific authority;
       [``(E) the method of evaluating the project; and
       [``(F) the agency's system for ensuring that the project is 
     implemented in a manner consistent with merit system 
     principles;
       [``(2) notification of the proposed project to employees 
     who are likely to be affected by the project;
       [``(3) an appropriate comment period;
       [``(4) publication of the final plan in the Federal 
     Register;
       [``(5) notification of the final project at least 90 days 
     in advance of the date any project proposed under this 
     section is to take effect to employees who are likely to be 
     affected by the project;
       [``(6) publication of any subsequent modification in the 
     Federal Register; and
       [``(7) notification of any subsequent modification to 
     employees who are included in the project.'';
       [(C) in subsection (c)--
       [(i) by striking paragraph (1) and inserting the following:
       [``(1) any provision of chapter 63 or subpart G of part III 
     of this title;'';
       [(ii) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively;
       [(iii) by inserting after paragraph (3) the following:
       [``(4) section 7342, 7351, or 7353;
       [``(5) the Ethics in Government Act of 1978 (5 U.S.C. 
     App.);''; and
       [(iv) in paragraph (6) as redesignated, by striking 
     ``paragraph (1), (2), or (3) of this subsection; or'' and 
     inserting ``paragraphs (1) through (5);'';
       [(D) by striking subsections (d) and (e) and inserting the 
     following:
       [``(d)(1) Unless terminated at an earlier date in 
     accordance with this section, each demonstration project 
     shall terminate at the end of the 10-year period beginning on 
     the date on which the project takes effect.
       [``(2) Before the end of the 5-year period beginning on the 
     date on which a demonstration project takes effect, the 
     Office shall submit a recommendation to Congress on whether 
     Congress should enact legislation to make that project 
     permanent.
       [``(e) The Office may terminate a demonstration project 
     under this chapter if the Office determines that the 
     project--
       [``(1) is not consistent with merit system principles set 
     forth in section 2301, veterans' preference principles, or 
     the provisions of this chapter; or
       [``(2) otherwise imposes a substantial hardship on, or is 
     not in the best interests of, the public, the Government, 
     employees, or eligibles.''; and
       [(E) by striking subsections (h) and (i) and inserting the 
     following:
       [``(h) Notwithstanding section 2302(e)(1), for purposes of 
     applying section 2302(b)(11) in a demonstration project under 
     this chapter, the term `veterans' preference requirement' 
     means any of the specific provisions of the demonstration 
     project plan that are designed to ensure that the project is 
     consistent with veterans' preference principles.
       [``(i) The Office shall ensure that each demonstration 
     project is evaluated. Each evaluation shall assess--
       [``(1) the project's compliance with the plan developed 
     under subsection (b)(1); and
       [``(2) the project's impact on improving public management.
       [``(j) Upon request of the Director of the Office of 
     Personnel Management, agencies shall cooperate with and 
     assist the Office in any evaluation undertaken under 
     subsection (i) and provide the Office with requested 
     information and reports relating to the conducting of 
     demonstration projects in their respective agencies.''.

     [SEC. 102. EFFECTIVE DATE.

       [This title shall take effect 180 days after the date of 
     enactment of this Act.

    [TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

     [SEC. 201. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

       [(a) Bonuses.--
       [(1) In general.--Chapter 57 of title 5, United States 
     Code, is amended by striking sections 5753 and 5754 and 
     inserting the following:

     [``Sec. 5753. Recruitment and relocation bonuses

       [``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described under subsection (c) of 
     that section.
       [``(b)(1) The Office of Personnel Management may authorize 
     the head of an agency to pay a bonus to an individual 
     appointed or moved to a position that is likely to be 
     difficult to fill in the absence of such a bonus, if the 
     individual--
       [``(A)(i) is newly appointed as an employee of the Federal 
     Government; or
       [``(ii) is currently employed by the Federal Government and 
     moves to a new position in the same geographic area under 
     circumstances described in regulations of the Office; or
       [``(B) is currently employed by the Federal Government and 
     must relocate to accept a position stationed in a different 
     geographic area.
       [``(2) Except as provided by subsection (h), a bonus may be 
     paid under this section only to an employee covered by the 
     General Schedule pay system established under subchapter III 
     of chapter 53.
       [``(c)(1) Payment of a bonus under this section shall be 
     contingent upon the employee entering into a written service 
     agreement to complete a period of employment with the agency, 
     not to exceed 4 years. The Office may, by regulation, 
     prescribe a minimum service.
       [``(2)(A) The agreement shall include--
       [``(i) the length of the required service period;
       [``(ii) the amount of the bonus;
       [``(iii) the method of payment; and
       [``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (d) and (e) and regulations 
     of the Office.
       [``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       [``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       [``(ii) the effect of the termination.
       [``(3) The agreement shall be made effective upon 
     employment with the agency or movement to a new position or 
     geographic

[[Page 6920]]

     area, as applicable, except that a service agreement with 
     respect to a recruitment bonus may be made effective at a 
     later date under circumstances described in regulations of 
     the Office, such as when there is an initial period of formal 
     basic training.
       [``(d)(1) Except as provided in subsection (e), a bonus 
     under this section shall not exceed 25 percent of the annual 
     rate of basic pay of the employee at the beginning of the 
     service period multiplied by the number of years (or 
     fractions thereof) in the service period, not to exceed 4 
     years.
       [``(2) A bonus under this section may be paid as an initial 
     lump sum, in installments, as a final lump sum upon the 
     completion of the full service period, or in a combination of 
     these forms of payment.
       [``(3) A bonus under this section is not part of the basic 
     pay of an employee for any purpose.
       [``(4) Under regulations of the Office, a recruitment bonus 
     under this section may be paid to an eligible individual 
     before that individual enters on duty.
       [``(e) The Office may authorize the head of an agency to 
     waive the limitation under subsection (d)(1) based on a 
     critical agency need, subject to regulations prescribed by 
     the Office. Under such a waiver, the amount of the bonus may 
     be up to 50 percent of the employee's annual rate of basic 
     pay at the beginning of the service period multiplied by the 
     number of years (or fractions thereof) in the service period, 
     not to exceed 100 percent of the employee's annual rate of 
     basic pay at the beginning of the service period.
       [``(f) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying recruitment bonuses and a plan for paying relocation 
     bonuses, subject to regulations prescribed by the Office.
       [``(g) The Office may prescribe regulations to carry out 
     this section, including regulations relating to the repayment 
     of a recruitment or relocation bonus in appropriate 
     circumstances when the agreed-upon service period has not 
     been completed.
       [``(h)(1) At the request of the head of an Executive 
     agency, the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       [``(2) The Office shall not extend coverage to the head of 
     an Executive agency, including an Executive agency headed by 
     a board or other collegial body composed of 2 or more 
     individual members.

     [``Sec. 5754. Retention bonuses

       [``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described in subsection (c) of that 
     section.
       [``(b) The Office of Personnel Management may authorize the 
     head of an agency to pay a retention bonus to an employee, 
     subject to regulations prescribed by the Office, if--
       [``(1) the unusually high or unique qualifications of the 
     employee or a special need of the agency for the employee's 
     services makes it essential to retain the employee; and
       [``(2) the agency determines that, in the absence of a 
     retention bonus, the employee would be likely to leave--
       [``(A) the Federal service; or
       [``(B) for a different position in the Federal service 
     under conditions described in regulations of the Office.
       [``(c) The Office may authorize the head of an agency to 
     pay retention bonuses to a group of employees in 1 or more 
     categories of positions in 1 or more geographic areas, 
     subject to the requirements of subsection (b)(1) and 
     regulations prescribed by the Office, if there is a high risk 
     that a significant portion of employees in the group would be 
     likely to leave in the absence of retention bonuses.
       [``(d) Except as provided in subsection (j), a bonus may be 
     paid only to an employee covered by the General Schedule pay 
     system established under subchapter III of chapter 53.
       [``(e)(1) Payment of a retention bonus is contingent upon 
     the employee entering into a written service agreement with 
     the agency to complete a period of employment with the 
     agency.
       [``(2)(A) The agreement shall include--
       [``(i) the length of the required service period;
       [``(ii) the amount of the bonus;
       [``(iii) the method of payment; and
       [``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (f) and (g) and regulations 
     of the Office.
       [``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       [``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       [``(ii) the effect of the termination.
       [``(3)(A) Notwithstanding paragraph (1), a written service 
     agreement is not required if the agency pays a retention 
     bonus in biweekly installments and sets the installment 
     payment at the full bonus percentage rate established for the 
     employee with no portion of the bonus deferred.
       [``(B) If an agency pays a retention bonus in accordance 
     with subparagraph (A) and makes a determination to terminate 
     the payments, the agency shall provide written notice to the 
     employee of that determination. Except as provided in 
     regulations of the Office, the employee shall continue to be 
     paid the retention bonus through the end of the pay period in 
     which such written notice is provided.
       [``(4) A retention bonus for an employee may not be based 
     on any period of such service which is the basis for a 
     recruitment or relocation bonus under section 5753.
       [``(f)(1) Except as provided in subsection (g), a retention 
     bonus, which shall be stated as a percentage of the 
     employee's basic pay for the service period associated with 
     the bonus, may not exceed--
       [``(A) 25 percent of the employee's basic pay if paid under 
     subsection (b); or
       [``(B) 10 percent of an employee's basic pay if paid under 
     subsection (c).
       [``(2) A retention bonus may be paid to an employee in 
     installments after completion of specified periods of service 
     or in a single lump sum at the end of the full period of 
     service required by the agreement. An installment payment may 
     not exceed the product derived from multiplying the amount of 
     basic pay earned in the installment period by a percentage 
     not to exceed the bonus percentage rate established for the 
     employee. If the installment payment percentage is less than 
     the bonus percentage rate, the accrued but unpaid portion of 
     the bonus is payable as part of the final installment payment 
     to the employee after completion of the full service period 
     under the terms of the service agreement.
       [``(3) A retention bonus is not part of the basic pay of an 
     employee for any purpose.
       [``(g) Upon the request of the head of an agency, the 
     Office may waive the limit established under subsection 
     (f)(1) and permit the agency head to pay an otherwise 
     eligible employee or category of employees retention bonuses 
     of up to 50 percent of basic pay, based on a critical agency 
     need.
       [``(h) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying retention bonuses, subject to regulations prescribed 
     by the Office.
       [``(i) The Office may prescribe regulations to carry out 
     this section.
       [``(j)(1) At the request of the head of an Executive 
     agency, the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       [``(2) The Office shall not extend coverage under this 
     section to the head of an Executive agency, including an 
     Executive agency headed by a board or other collegial body 
     composed of 2 or more individual members.''.
       [(2) Technical and conforming amendment.--The table of 
     sections for chapter 57 of title 5, United States Code, is 
     amended by striking the item relating to section 5754 and 
     inserting the following:

[``5754. Retention bonuses.''.
       [(b) Relocation Payments.--Section 407 of the Federal 
     Employees Pay Comparability Act of 1990 (5 U.S.C. 5305 note; 
     104 Stat. 1467) is repealed.
       [(c) Effective Date and Application.--
       [(1) Effective date.--Except as provided under paragraphs 
     (2) and (3), this section shall take effect on the first day 
     of the first applicable pay period beginning on or after 180 
     days after the date of enactment of this Act.
       [(2) Application to agreements.--A recruitment or 
     relocation bonus service agreement that was authorized under 
     section 5753 of title 5, United States Code, before the 
     effective date under paragraph (1) shall continue, until its 
     expiration, to be subject to section 5753 as in effect on the 
     day before such effective date.
       [(3) Application to allowances.--Payment of a retention 
     allowance that was authorized under section 5754 of title 5, 
     United States Code, before the effective date under paragraph 
     (1) shall continue, subject to section 5754 as in effect on 
     the day before such effective date, until the retention 
     allowance is reauthorized or terminated (but no longer than 1 
     year after such effective date).

     [SEC. 202. STREAMLINED CRITICAL PAY AUTHORITY.

       [Section 5377 of title 5, United States Code, is amended--
       [(1) by striking subsection (c) and inserting the 
     following:
       [``(c) The Office of Personnel Management, in consultation 
     with the Office of Management and Budget, may, upon the 
     request of the head of an agency, grant authority to fix the 
     rate of basic pay for 1 or more positions in such agency in 
     accordance with this section.'';
       [(2) in subsection (e)(1), by striking ``Office of 
     Management and Budget'' and inserting ``Office of Personnel 
     Management'';
       [(3) by striking subsections (f) and (g) and inserting the 
     following:
       [``(f) The Office of Personnel Management may not authorize 
     the exercise of authority under this section with respect to 
     more than 800 positions at any 1 time, of which not more than 
     30 may, at any such time, be positions the rate of basic pay 
     for which would otherwise be determined under subchapter II.
       [``(g) The Office of Personnel Management shall consult 
     with the Office of Management and Budget before making any 
     decision to grant or terminate any authority under this 
     section.''; and

[[Page 6921]]

       [(4) in subsection (h), by striking ``The Office of 
     Management and Budget shall report to the Committee on Post 
     Office and Civil Service'' and inserting ``The Office of 
     Personnel Management shall report to the Committee on 
     Government Reform.''.

     [SEC. 203. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR 
                   PART-TIME SERVICE.

       [Section 8339(p) of title 5, United States Code, is amended 
     by adding at the end the following:
       [``(3) In the administration of paragraph (1)--
       [``(A) subparagraph (A) of such paragraph shall apply to 
     any service performed before, on, or after April 7, 1986;
       [``(B) subparagraph (B) of such paragraph shall apply to 
     all service performed on a part-time or full-time basis on or 
     after April 7, 1986; and
       [``(C) any service performed on a part-time basis before 
     April 7, 1986, shall be credited as service performed on a 
     full-time basis.''.

     [SEC. 204. CORRECTIONS RELATING TO PAY ADMINISTRATION.

       [(a) In General.--Chapter 53 of title 5, United States 
     Code, is amended--
       [(1) in section 5302, by striking paragraph (8) and 
     inserting the following:
       [``(8) the term `rates of pay under the General Schedule', 
     `rates of pay for the General Schedule', or `scheduled rates 
     of basic pay' means the unadjusted rates of basic pay in the 
     General Schedule as established by section 5332, excluding 
     additional pay of any kind; and'';
       [(2) in section 5305--
       [(A) by striking subsection (a) and inserting the 
     following:
       [``(a)(1) Whenever the Office of Personnel Management finds 
     that the Government's recruitment or retention efforts with 
     respect to 1 or more occupations in 1 or more areas or 
     locations are, or are likely to become, significantly 
     handicapped due to any of the circumstances described in 
     subsection (b), the Office may establish for the areas or 
     locations involved, with respect to individuals in positions 
     paid under any of the pay systems referred to in subsection 
     (c), higher minimum rates of pay for 1 or more grades or 
     levels, occupational groups, series, classes, or subdivisions 
     thereof, and may make corresponding increases in all rates of 
     pay range for each such grade or level. However, a minimum 
     rate so established may not exceed the maximum rate of basic 
     pay (excluding any locality-based comparability payment under 
     section 5304 or similar provision of law) for the grade or 
     level by more than 30 percent, and no rate may be established 
     under this section in excess of the rate of basic pay payable 
     for level IV of the Executive Schedule. In the case of 
     individuals not subject to the provisions of this title 
     governing appointment in the competitive service, the 
     President may designate another agency to authorize special 
     rates under this section.
       [``(2) The head of an agency may determine that a category 
     of employees of the agency will not be covered by a special 
     rate authorization established under this section. The head 
     of an agency shall provide written notice to the Office of 
     Personnel Management (or other agency designated by the 
     President to authorize special rates) which identifies the 
     specific category or categories of employees that will not be 
     covered by special rates authorized under this section. If 
     the head of an agency removes a category of employees from 
     coverage under a special rate authorization after that 
     authorization takes effect, the loss of coverage will take 
     effect on the first day of the first pay period after the 
     date of the notice.'';
       [(B) in subsection (b), by striking paragraph (4) and 
     inserting the following:
       [``(4) any other circumstances which the Office of 
     Personnel Management (or such agency as the President may 
     designate) considers appropriate.'';
       [(C) in subsection (d)--
       [(i) by striking ``President'' and inserting ``Office of 
     Personnel Management''; and
       [(ii) by striking ``he'' and inserting ``the President'';
       [(D) in subsection (e), by striking ``basic pay'' and 
     inserting ``pay'';
       [(E) by striking subsection (f) and inserting the 
     following:
       [``(f) When a schedule of special rates established under 
     this section is adjusted under subsection (d), a covered 
     employee's special rate will be adjusted in accordance with 
     conversion rules prescribed by the Office of Personnel 
     Management or by such agency as the President may 
     designate.'';
       [(F) in subsection (g)(1)--
       [(i) by striking ``basic pay'' and inserting ``pay''; and
       [(ii) by striking ``President (or his designated agency)'' 
     and inserting ``Office of Personnel Management (or such 
     agency as the President may designate)'';
       [(G) by striking subsection (h) and inserting the 
     following:
       [``(h) An employee's entitlement to a rate of pay 
     established under this section terminates when the employee 
     is entitled to a higher rate of pay (including basic pay as 
     adjusted to include any locality-based comparability payment 
     under section 5304 or similar provision of law).''; and
       [(H) by adding at the end the following:
       [``(i) When an employee who is receiving a rate of pay 
     established under this section moves to a new official duty 
     station at which different pay schedules apply, the employee 
     shall be entitled to the rates of pay applicable in the new 
     pay area based on the employee's position, grade, and step 
     (or relative position in the rate range) before the movement, 
     as determined under regulations prescribed by the Office of 
     Personnel Management or other agency designated by the 
     President under subsection (a). Such pay conversion upon 
     geographic movement shall be effected before processing any 
     other simultaneous pay action (other than a general pay 
     adjustment).
       [``(j) A rate established under this section shall be 
     considered to be part of basic pay for purposes of subchapter 
     III of chapter 83, chapter 84, chapter 87, subchapter V of 
     chapter 55, section 5941, and for such other purposes as may 
     be expressly provided for by law or as the Office of 
     Personnel Management may by regulation prescribe.'';
       [(3) in section 5334--
       [(A) in subsection (b), by adding at the end the following:
     [``If an employee's rate after promotion or transfer is 
     greater than the maximum rate of basic pay for the employee's 
     grade, that rate shall be treated as a retained rate under 
     section 5363. The Office of Personnel Management shall 
     prescribe by regulation the circumstances under which and the 
     extent to which special rates under section 5305 (or similar 
     provision of law) or locality-adjusted rates under section 
     5304 (or similar provision of law) are considered to be basic 
     pay in applying this subsection.''; and
       [(B) by adding at the end the following:
       [``(g) When an employee moves to a new official duty 
     station at which different pay schedules apply, the employee 
     shall be entitled to the rates of pay applicable in the new 
     pay area based on the employee's position, grade, and step 
     (or relative position in the rate range) before the movement. 
     Such pay conversion upon geographic movement shall be 
     effected before processing any other simultaneous pay action 
     (other than a general pay adjustment).'';
       [(4) in section 5361--
       [(A) by striking paragraphs (3) and (4) and redesignating 
     paragraphs (5) through (7) as paragraphs (3) through (5), 
     respectively;
       [(B) in paragraph (4), as redesignated, by striking ``and'' 
     at the end;
       [(C) in paragraph (5), as redesignated, by striking the 
     period and inserting a semicolon; and
       [(D) by adding at the end the following:
       [``(6) `rate of basic pay' means--
       [``(A) the rate of pay prescribed by law (including 
     regulations) for the position held by an employee before any 
     deductions or additions of any kind, but including--
       [``(i) any applicable locality-based payment under section 
     5304 or similar provision of law;
       [``(ii) any applicable special salary rate under section 
     5305 or similar provision of law; and
       [``(iii) any applicable existing retained rate of pay 
     established under section 5363 or similar provision of law; 
     and
       [``(B) in the case of a prevailing rate employee, the 
     scheduled rate of pay determined under section 5343;
       [``(7) `former highest applicable rate of basic pay' means 
     the highest applicable rate of basic pay payable to the 
     employee immediately before the action that triggers pay 
     retention under section 5363; and
       [``(8) `highest applicable basic pay rate range' means the 
     range of rates of basic pay for the grade or level of the 
     employee's current position with the highest maximum rate, 
     except as otherwise provided in regulations prescribed by the 
     Office of Personnel Management in cases where another rate 
     range provides higher rates only in the lower portion of the 
     range.'';
       [(5) in section 5363--
       [(A) in subsection (a), by amending the matter following 
     paragraph (4) to read as follows:
     [``is entitled to pay retention under the conditions set 
     forth in this section. Notwithstanding any other provision of 
     law, this section may not be applied to employees whose rate 
     of basic pay is reduced solely because of the recomputation 
     of pay upon movement to a new official duty station at which 
     different pay schedules apply. When a geographic move is 
     accompanied by a simultaneous pay action that reduces the 
     employee's rate of basic pay after the employee's pay has 
     been recomputed to reflect the geographic move, this section 
     shall be applied, if otherwise applicable.''; and
       [(B) by striking subsections (b) and (c) and inserting the 
     following:
       [``(b)(1) If an employee is entitled to pay retention under 
     subsection (a), paragraphs (2) and (3) shall apply in 
     determining the employee's rate of pay:
       [``(2) If the employee's former highest applicable rate of 
     basic pay is less than or equal to the maximum rate of the 
     highest applicable basic pay rate range for the employee's 
     current position, the employee is entitled to the lowest 
     payable rate of basic pay in that rate range that equals or 
     exceeds the former rate, and pay retention ceases to apply.
       [``(3) If the employee's former highest applicable rate of 
     basic pay exceeds the maximum rate of the highest applicable 
     basic

[[Page 6922]]

     pay rate range for the employee's current position, the 
     employee is entitled to a retained rate equal to the lesser 
     of--
       [``(A) the employee's former highest applicable rate of 
     basic pay; or
       [``(B) 150 percent of the maximum rate of the highest 
     applicable basic pay rate range for the employee's position.
       [``(c) An employee's retained rate shall be increased at 
     the time of any increase in the maximum rate of the highest 
     applicable basic pay rate range for the employee's position 
     by 50 percent of the dollar increase in that maximum rate.
       [``(d) The rate of pay for an employee who is receiving a 
     retained rate under this section and who is moved to a new 
     official duty station at which different pay schedules apply 
     shall be determined under regulations prescribed by the 
     Office of Personnel Management consistent with the purposes 
     of this section.
       [``(e) A retained rate shall be considered part of basic 
     pay for purposes of this subchapter and for purposes of 
     subchapter III of chapter 83, chapters 84 and 87, subchapter 
     V of chapter 55, section 5941, and for such other purposes as 
     may be expressly provided for by law or as the law or as the 
     Office of Personnel Management may by regulation prescribe. 
     For other purposes, the Office shall prescribe by regulation 
     what constitutes basic pay for employees receiving a retained 
     rate.
       [``(f) Subsections (a) through (e) do not apply (or shall 
     cease to apply) to an employee who--
       [``(1) has a break in service of 1 workday or more;
       [``(2) is entitled by operation of this subchapter or 
     chapter 51 or 53 to a rate of basic pay which is equal to or 
     higher than, or declines a reasonable offer of a position the 
     rate of basic pay for which is equal to or higher than, the 
     rate to which the employee is entitled under this section; or
       [``(3) is demoted for personal cause or at the employee's 
     request.''; and
       [(6) in section 5365(b) by inserting after ``provisions of 
     this subchapter'' the following: ``(subject to any conditions 
     or limitations the Office may establish)''.
       [(b) Special Rates for Law Enforcement Officers.--Section 
     403(c) of the Federal Employees Pay Comparability Act of 1990 
     (5 U.S.C. 5305 note; Public Law 101-509) is amended by 
     striking all after ``provision of law)'' and inserting ``and 
     shall be basic pay for all purposes. The rates shall be 
     adjusted at the time of adjustments in the General Schedule 
     to maintain the step linkage set forth in subsection 
     (b)(2).''.
       [(c) Pay Retention.--Subject to any regulations the Office 
     of Personnel Management may prescribe, any employee in a 
     covered pay schedule who is receiving a retained rate under 
     section 5363 of title 5, United States Code, or similar 
     authority on the effective date of this Act shall have the 
     pay of that employee converted on that date. The newly 
     applicable retained rate shall equal the formerly applicable 
     retained rate as adjusted to include any applicable locality-
     based payment under section 5304 of title 5, United States 
     Code, or similar provision of law. Any employee in a covered 
     pay system receiving a rate that exceeds the maximum rate of 
     the highest applicable basic pay rate range for the 
     employee's position (as defined under section 5361(8) of that 
     title, as amended by this Act) under any authority shall be 
     considered to be receiving a retained rate under section 5363 
     of that title.

[TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

     [SEC. 301. AGENCY TRAINING.

       [(a) Training To Accomplish Performance Plans and Strategic 
     Goals.--Section 4103 of title 5, United States Code, is 
     amended by adding at the end the following:
       [``(c) The head of each agency shall--
       [``(1) evaluate each program or plan established, operated, 
     or maintained under subsection (a) with respect to 
     accomplishing specific performance plans and strategic goals 
     in performing the agency mission; and
       [``(2) modify such program or plan to accomplish such plans 
     and goals.''.
       [(b) Agency Training Officer; Specific Training Programs.--
       [(1) In general.--Chapter 41 of title 5, United States 
     Code, is amended by adding after section 4119 the following:

     [``Sec. 4120. Agency training officer

       [``Each agency shall appoint or designate a training 
     officer who shall be responsible for developing, 
     coordinating, and administering training for the agency.

     [``Sec. 4121. Specific training programs

       [``In consultation with the Office of Personnel Management, 
     each head of an agency shall establish--
       [``(1) a comprehensive management succession program to 
     provide training to employees to develop managers for the 
     agency; and
       [``(2) a program to provide training to managers on 
     actions, options, and strategies a manager may use in--
       [``(A) relating to employees with unacceptable 
     performances; and
       [``(B) mentoring employees and improving employee 
     performance and productivity.''.
       [(2) Technical and conforming amendment.--The table of 
     sections for chapter 41 of title 5, United States Code, is 
     amended by adding at the end the following:

[``4120. Agency training officer.
[``4121. Specific training programs.''.

     [SEC. 302. ANNUAL LEAVE ENHANCEMENTS.

       [(a) Accrual of Leave for Newly Hired Federal Employees 
     With Qualified Experience.--
       [(1) In general.--Section 6303 of title 5, United States 
     Code, is amended by adding at the end the following:
       [``(e)(1) In this subsection, the term `period of qualified 
     non-Federal service' means any equal period of service 
     performed by an individual that--
       [``(A) except for this subsection would not otherwise be 
     service performed by an employee for purposes of subsection 
     (a); and
       [``(B) was performed in a position--
       [``(i) the duties of which were directly related to the 
     duties of the position in an agency that such individual 
     holds; and
       [``(ii) which meets such other conditions as the Office of 
     Personnel Management shall prescribe by regulation.
       [``(2) For purposes of subsection (a), the head of an 
     agency may deem a period of qualified non-Federal service 
     performed by an individual to be a period of service 
     performed as an employee.''.
       [(2) Effective date.--This section shall take effect 120 
     days after the date of enactment of this Act and shall only 
     apply to an individual hired on or after that effective date.
       [(b) Senior Executive Service Annual Leave Enhancements.--
       [(1) In general.--Section 6303(a) of title 5, United States 
     Code, is amended--
       [(A) in paragraph (2), by striking ``and'' at the end;
       [(B) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       [(C) by adding after paragraph (3) the following:
       [``(4) one day for each full biweekly pay period for an 
     employee in a position paid under section 5376 or 5383, or 
     for an employee in an equivalent category for which the 
     minimum rate of basic pay is greater than the rate payable at 
     GS-15, step 10.''.
       [(2) Regulations.--Not later than 120 days after the date 
     of enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations to carry out the amendments made 
     by this subsection.
       [(3) Effective dates.--
       [(A) In general.--Paragraph (1) shall take effect 120 days 
     after the date of enactment of this Act.
       [(B) Regulations.--Paragraph (2) shall take effect on the 
     date of enactment of this Act.]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Workforce Flexibility Act of 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 101. Recruitment, relocation, and retention bonuses.
Sec. 102. Streamlined critical pay authority.
Sec. 103. Civil service retirement system computation for part-time 
              service.
Sec. 104. Retirement service credit for cadet or midshipman service.
Sec. 105. Senior Executive Service authority for White House Office of 
              Administration.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 201. Agency training.
Sec. 202. Annual leave enhancements.
Sec. 203. Compensatory time off for travel.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

     SEC. 101. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

       (a) Bonuses.--
       (1) In general.--Chapter 57 of title 5, United States Code, 
     is amended by inserting after section 5754 the following:

     ``Sec. 5754a. Recruitment and relocation bonuses

       ``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described under subsection (c) of 
     that section.
       ``(b)(1) The Office of Personnel Management may authorize 
     the head of an agency to pay a bonus to an individual 
     appointed or moved to a position that is likely to be 
     difficult to fill in the absence of such a bonus, if the 
     individual--
       ``(A)(i) is newly appointed as an employee of the Federal 
     Government; or
       ``(ii) is currently employed by the Federal Government and 
     moves to a new position in the same geographic area under 
     circumstances described in regulations of the Office; or
       ``(B) is currently employed by the Federal Government and 
     must relocate to accept a position stationed in a different 
     geographic area.
       ``(2) Except as provided by subsection (h), a bonus may be 
     paid under this section only to an employee covered by the 
     General Schedule pay system established under subchapter III 
     of chapter 53.
       ``(c)(1) Payment of a bonus under this section shall be 
     contingent upon the employee entering into a written service 
     agreement to complete a period of employment with the agency, 
     not to

[[Page 6923]]

     exceed 4 years. The Office may, by regulation, prescribe a 
     minimum service.
       ``(2)(A) The agreement shall include--
       ``(i) the length of the required service period;
       ``(ii) the amount of the bonus;
       ``(iii) the method of payment; and
       ``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (d) and (e) and regulations 
     of the Office.
       ``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       ``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       ``(ii) the effect of the termination.
       ``(3) The agreement shall be made effective upon employment 
     with the agency or movement to a new position or geographic 
     area, as applicable, except that a service agreement with 
     respect to a recruitment bonus may be made effective at a 
     later date under circumstances described in regulations of 
     the Office, such as when there is an initial period of formal 
     basic training.
       ``(d)(1) Except as provided in subsection (e), a bonus 
     under this section shall not exceed 25 percent of the annual 
     rate of basic pay of the employee at the beginning of the 
     service period multiplied by the number of years (or 
     fractions thereof) in the service period, not to exceed 4 
     years.
       ``(2) A bonus under this section may be paid as an initial 
     lump sum, in installments, as a final lump sum upon the 
     completion of the full service period, or in a combination of 
     these forms of payment.
       ``(3) A bonus under this section is not part of the basic 
     pay of an employee for any purpose.
       ``(4) Under regulations of the Office, a recruitment bonus 
     under this section may be paid to an eligible individual 
     before that individual enters on duty.
       ``(e) The Office may authorize the head of an agency to 
     waive the limitation under subsection (d)(1) based on a 
     critical agency need, subject to regulations prescribed by 
     the Office. Under such a waiver, the amount of the bonus may 
     be up to 50 percent of the employee's annual rate of basic 
     pay at the beginning of the service period multiplied by the 
     number of years (or fractions thereof) in the service period, 
     not to exceed 100 percent of the employee's annual rate of 
     basic pay at the beginning of the service period.
       ``(f) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying recruitment bonuses and a plan for paying relocation 
     bonuses, subject to regulations prescribed by the Office.
       ``(g) The Office may prescribe regulations to carry out 
     this section, including regulations relating to the repayment 
     of a recruitment or relocation bonus in appropriate 
     circumstances when the agreed-upon service period has not 
     been completed.
       ``(h)(1) At the request of the head of an Executive agency, 
     the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       ``(2) A bonus may not be paid under this section to an 
     individual who is appointed to, or who holds--
       ``(A) a position to which an individual is appointed by the 
     President, by and with the advice and consent of the Senate;
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined under section 
     3132(a)); or
       ``(C) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character.
       ``(i)(1) The Office of Personnel Management shall submit an 
     annual report on bonuses paid under this section to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       ``(2) Each report submitted under this subsection shall 
     include the use by each agency of recruitment and relocation 
     bonuses, including, with respect to each agency and each type 
     of bonus, the number and amount of bonuses by grade 
     (including the General Schedule, the Senior Executive 
     Service, and positions on the Executive Schedule).
       ``(j)(1) An individual may not be paid a recruitment bonus 
     under this section and a recruitment bonus under section 
     5753.
       ``(2) An individual may not be paid a relocation bonus 
     under this section and a relocation bonus under section 5753.

     ``Sec. 5754b. Retention bonuses

       ``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described in subsection (c) of that 
     section.
       ``(b) The Office of Personnel Management may authorize the 
     head of an agency to pay a retention bonus to an employee, 
     subject to regulations prescribed by the Office, if--
       ``(1) the unusually high or unique qualifications of the 
     employee or a special need of the agency for the employee's 
     services makes it essential to retain the employee; and
       ``(2) the agency determines that, in the absence of a 
     retention bonus, the employee would be likely to leave--
       ``(A) the Federal service; or
       ``(B) for a different position in the Federal service under 
     conditions described in regulations of the Office.
       ``(c) The Office may authorize the head of an agency to pay 
     retention bonuses to a group of employees in 1 or more 
     categories of positions in 1 or more geographic areas, 
     subject to the requirements of subsection (b)(1) and 
     regulations prescribed by the Office, if there is a high risk 
     that a significant portion of employees in the group would be 
     likely to leave in the absence of retention bonuses.
       ``(d) Except as provided in subsection (j), a bonus may be 
     paid only to an employee covered by the General Schedule pay 
     system established under subchapter III of chapter 53.
       ``(e)(1) Payment of a retention bonus is contingent upon 
     the employee entering into a written service agreement with 
     the agency to complete a period of employment with the 
     agency.
       ``(2)(A) The agreement shall include--
       ``(i) the length of the required service period;
       ``(ii) the amount of the bonus;
       ``(iii) the method of payment; and
       ``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (f) and (g) and regulations 
     of the Office.
       ``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       ``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       ``(ii) the effect of the termination.
       ``(3)(A) Notwithstanding paragraph (1), a written service 
     agreement is not required if the agency pays a retention 
     bonus in biweekly installments and sets the installment 
     payment at the full bonus percentage rate established for the 
     employee with no portion of the bonus deferred.
       ``(B) If an agency pays a retention bonus in accordance 
     with subparagraph (A) and makes a determination to terminate 
     the payments, the agency shall provide written notice to the 
     employee of that determination. Except as provided in 
     regulations of the Office, the employee shall continue to be 
     paid the retention bonus through the end of the pay period in 
     which such written notice is provided.
       ``(4) A retention bonus for an employee may not be based on 
     any period of such service which is the basis for a 
     recruitment or relocation bonus under section 5753 or 5754a.
       ``(f)(1) Except as provided in subsection (g), a retention 
     bonus, which shall be stated as a percentage of the 
     employee's basic pay for the service period associated with 
     the bonus, may not exceed--
       ``(A) 25 percent of the employee's basic pay if paid under 
     subsection (b); or
       ``(B) 10 percent of an employee's basic pay if paid under 
     subsection (c).
       ``(2) A retention bonus may be paid to an employee in 
     installments after completion of specified periods of service 
     or in a single lump sum at the end of the full period of 
     service required by the agreement. An installment payment may 
     not exceed the product derived from multiplying the amount of 
     basic pay earned in the installment period by a percentage 
     not to exceed the bonus percentage rate established for the 
     employee. If the installment payment percentage is less than 
     the bonus percentage rate, the accrued but unpaid portion of 
     the bonus is payable as part of the final installment payment 
     to the employee after completion of the full service period 
     under the terms of the service agreement.
       ``(3) A retention bonus is not part of the basic pay of an 
     employee for any purpose.
       ``(g) Upon the request of the head of an agency, the Office 
     may waive the limit established under subsection (f)(1) and 
     permit the agency head to pay an otherwise eligible employee 
     or category of employees retention bonuses of up to 50 
     percent of basic pay, based on a critical agency need.
       ``(h) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying retention bonuses, subject to regulations prescribed 
     by the Office.
       ``(i) The Office may prescribe regulations to carry out 
     this section.
       ``(j)(1) At the request of the head of an Executive agency, 
     the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       ``(2) A bonus may not be paid under this section to an 
     employee who holds--
       ``(A) a position to which an individual is appointed by the 
     President, by and with the advice and consent of the Senate;
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined under section 
     3132(a)); or
       ``(C) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character.
       ``(k)(1) The Office of Personnel Management shall submit an 
     annual report on bonuses paid under this section to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       ``(2) Each report submitted under this subsection shall 
     include the use by each agency of retention bonuses, 
     including, with respect to each agency, the number and amount 
     of bonuses by grade (including the General Schedule, the 
     Senior Executive Service, and positions on the Executive 
     Schedule).
       ``(l) An employee may not be paid a retention bonus under 
     this section and a retention allowance under section 5754.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 57 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5754 
     the following:

``5754a. Recruitment and relocation bonuses.
``5754b. Retention bonuses.''.
       (b) Effective Date and Application.--This section shall 
     take effect on the first day of the

[[Page 6924]]

     first applicable pay period beginning on or after 180 days 
     after the date of enactment of this Act.

     SEC. 102. STREAMLINED CRITICAL PAY AUTHORITY.

       Section 5377 of title 5, United States Code, is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) The Office of Personnel Management, in consultation 
     with the Office of Management and Budget, may, upon the 
     request of the head of an agency, grant authority to fix the 
     rate of basic pay for 1 or more positions in such agency in 
     accordance with this section.'';
       (2) in subsection (e)(1), by striking ``Office of 
     Management and Budget'' and inserting ``Office of Personnel 
     Management'';
       (3) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) The Office of Personnel Management may not authorize 
     the exercise of authority under this section with respect to 
     more than 800 positions at any 1 time, of which not more than 
     30 may, at any such time, be positions the rate of basic pay 
     for which would otherwise be determined under subchapter II.
       ``(g) The Office of Personnel Management shall consult with 
     the Office of Management and Budget before making any 
     decision to grant or terminate any authority under this 
     section.''; and
       (4) in subsection (h), by striking ``The Office of 
     Management and Budget shall report to the Committee on Post 
     Office and Civil Service'' and inserting ``The Office of 
     Personnel Management shall report to the Committee on 
     Government Reform.''.

     SEC. 103. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR 
                   PART-TIME SERVICE.

       Section 8339(p) of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(3) In the administration of paragraph (1)--
       ``(A) subparagraph (A) of such paragraph shall apply to any 
     service performed before, on, or after April 7, 1986;
       ``(B) subparagraph (B) of such paragraph shall apply to all 
     service performed on a part-time or full-time basis on or 
     after April 7, 1986; and
       ``(C) any service performed on a part-time basis before 
     April 7, 1986, shall be credited as service performed on a 
     full-time basis.''.

     SEC. 104. RETIREMENT SERVICE CREDIT FOR CADET OR MIDSHIPMAN 
                   SERVICE.

       (a) Civil Service Retirement System.--Section 8331(13) of 
     title 5, United States Code, is amended by striking ``but'' 
     and inserting ``and includes service as a cadet at the United 
     States Military Academy, the United States Air Force Academy, 
     or the United States Coast Guard Academy, or as a midshipman 
     at the United States Naval Academy, but''.
       (b) Federal Employees' Retirement System.--Section 8401(31) 
     of title 5, United States Code, is amended by striking 
     ``but'' and inserting ``and includes service as a cadet at 
     the United States Military Academy, the United States Air 
     Force Academy, or the United States Coast Guard Academy, or 
     as a midshipman at the United States Naval Academy, but''.
       (c) Effective Date and Application.--The amendments made by 
     this section shall apply to--
       (1) any annuity, eligibility for which is based upon a 
     separation occurring before, on, or after the date of 
     enactment of this Act; and
       (2) any period of service as a cadet or midshipman at the 
     military service academy of the Army, Air Force, Coast Guard, 
     or Navy, occurring before, on, or after the date of enactment 
     of this Act.

     SEC. 105. SENIOR EXECUTIVE SERVICE AUTHORITY FOR WHITE HOUSE 
                   OFFICE OF ADMINISTRATION.

       Chapter 2 of title 3, United States Code, is amended--
       (1) in section 107(b)--
       (A) in paragraph (2), by striking ``section 3101'' and 
     inserting ``sections 3101 and 3132''; and
       (B) by adding at the end the following:
       ``(3) Any permanent Senior Executive Service position 
     established under paragraph (2) shall be a career reserved 
     position.'';
       (2) in section 114--
       (A) by redesignating that section as subsection (a);
       (B) by amending that subsection, as so redesignated, by 
     striking ``minimum rate of basic pay then currently paid for 
     GS-16'' and inserting ``maximum rate of basic pay then 
     currently paid for GS-15''; and
       (C) by adding at the end the following:
       ``(b) The limitation established in subsection (a) shall 
     not apply to an individual appointed under the authority in 
     section 107(b)(2), in accordance with section 3132 of title 
     5.''.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

     SEC. 201. AGENCY TRAINING.

       (a) Training To Accomplish Performance Plans and Strategic 
     Goals.--Section 4103 of title 5, United States Code, is 
     amended by adding at the end the following:
       ``(c) The head of each agency shall--
       ``(1) evaluate each program or plan established, operated, 
     or maintained under subsection (a) with respect to 
     accomplishing specific performance plans and strategic goals 
     in performing the agency mission; and
       ``(2) modify such program or plan to accomplish such plans 
     and goals.''.
       (b) Agency Training Officer; Specific Training Programs.--
       (1) In general.--Chapter 41 of title 5, United States Code, 
     is amended by adding after section 4119 the following:

     ``Sec. 4120. Agency training officer

       ``Each agency shall appoint or designate a training officer 
     who shall be responsible for developing, coordinating, and 
     administering training for the agency.

     ``Sec. 4121. Specific training programs

       ``In consultation with the Office of Personnel Management, 
     each head of an agency shall establish--
       ``(1) a comprehensive management succession program to 
     provide training to employees to develop managers for the 
     agency; and
       ``(2) a program to provide training to managers on actions, 
     options, and strategies a manager may use in--
       ``(A) relating to employees with unacceptable performances; 
     and
       ``(B) mentoring employees and improving employee 
     performance and productivity.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 41 of title 5, United States Code, is 
     amended by adding at the end the following:

``4120. Agency training officer.
``4121. Specific training programs.''.

     SEC. 202. ANNUAL LEAVE ENHANCEMENTS.

       (a) Accrual of Leave for Newly Hired Federal Employees With 
     Qualified Experience.--
       (1) In general.--Section 6303 of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(e)(1) In this subsection, the term `period of qualified 
     non-Federal career experience' means any equal period of 
     service performed by an individual that--
       ``(A) except for this subsection would not otherwise be 
     service performed by an employee for purposes of subsection 
     (a); and
       ``(B) was performed in a position--
       ``(i) the duties of which were directly related to the 
     duties of the position in an agency that such individual 
     holds; and
       ``(ii) which meets such other conditions as the Office of 
     Personnel Management shall prescribe by regulation.
       ``(2) For purposes of subsection (a), the head of an agency 
     may deem a period of qualified non-Federal career experience 
     performed by an individual to be a period of service 
     performed as an employee.''.
       (2) Effective date.--This section shall take effect 120 
     days after the date of enactment of this Act and shall only 
     apply to an individual hired on or after that effective date.
       (b) Senior Executive Service Annual Leave Enhancements.--
       (1) In general.--Section 6303(a) of title 5, United States 
     Code, is amended--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding after paragraph (3) the following:
       ``(4) one day for each full biweekly pay period for an 
     employee in a position paid under section 5376 or 5383, or 
     for an employee in an equivalent category for which the 
     minimum rate of basic pay is greater than the rate payable at 
     GS-15, step 10.''.
       (2) Regulations.--Not later than 120 days after the date of 
     enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations to carry out the amendments made 
     by this subsection.
       (3) Effective dates.--
       (A) In general.--Paragraph (1) shall take effect 120 days 
     after the date of enactment of this Act.
       (B) Regulations.--Paragraph (2) shall take effect on the 
     date of enactment of this Act.

     SEC. 203. COMPENSATORY TIME OFF FOR TRAVEL.

       (a) In General.--Subchapter V of chapter 55 of title 5, 
     United States Code, is amended by adding at end the 
     following:

     ``Sec. 5550b. Compensatory time off for travel

       ``(a) Notwithstanding section 5542(b)(2), each hour spent 
     by an employee in travel status away from the official duty 
     station of the employee, that is not otherwise compensable, 
     shall be treated as an hour of work or employment for 
     purposes of calculating compensatory time off.
       ``(b) An employee who has any hours treated as hours of 
     work or employment for purposes of calculating compensatory 
     time under subsection (a), shall not be entitled to payment 
     for any such hours that are unused as compensatory time.
       ``(c) Not later than 30 days after the date of enactment of 
     this section, the Office of Personnel Management shall 
     prescribe regulations to implement this section.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 55 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5550a 
     the following:
``5550b. Compensatory time off for travel.''.

  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
at the desk be agreed to, the committee substitute, as amended, be 
agreed to, the bill, as amended, be read a third time and passed, the 
motions to reconsider be laid upon the table en bloc, and that any 
statements relating to the bill be printed in the Record.

[[Page 6925]]

  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3045) was agreed to, as follows:


                           AMENDMENT NO. 3045

               (Purpose: To make a technical correction)

       On page 48, line 19, insert ``in the first sentence,'' 
     after ``paragraph (2),''.

  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 129), as amended, was read the third time and passed, as 
follows:

                                 S. 129

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Workforce Flexibility Act of 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

       Sec. 1. Short title; table of contents.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

       Sec. 101. Recruitment, relocation, and retention bonuses.
       Sec. 102. Streamlined critical pay authority.
       Sec. 103. Civil service retirement system computation for 
           part-time service.
       Sec. 104. Retirement service credit for cadet or midshipman 
           service.
Sec. 105. Senior Executive Service authority for White House Office of 
              Administration.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 201. Agency training.
Sec. 202. Annual leave enhancements.
Sec. 203. Compensatory time off for travel.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

     SEC. 101. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

       (a) Bonuses.--
       (1) In general.--Chapter 57 of title 5, United States Code, 
     is amended by inserting after section 5754 the following:

     ``Sec. 5754a. Recruitment and relocation bonuses

       ``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described under subsection (c) of 
     that section.
       ``(b)(1) The Office of Personnel Management may authorize 
     the head of an agency to pay a bonus to an individual 
     appointed or moved to a position that is likely to be 
     difficult to fill in the absence of such a bonus, if the 
     individual--
       ``(A)(i) is newly appointed as an employee of the Federal 
     Government; or
       ``(ii) is currently employed by the Federal Government and 
     moves to a new position in the same geographic area under 
     circumstances described in regulations of the Office; or
       ``(B) is currently employed by the Federal Government and 
     must relocate to accept a position stationed in a different 
     geographic area.
       ``(2) Except as provided by subsection (h), a bonus may be 
     paid under this section only to an employee covered by the 
     General Schedule pay system established under subchapter III 
     of chapter 53.
       ``(c)(1) Payment of a bonus under this section shall be 
     contingent upon the employee entering into a written service 
     agreement to complete a period of employment with the agency, 
     not to exceed 4 years. The Office may, by regulation, 
     prescribe a minimum service.
       ``(2)(A) The agreement shall include--
       ``(i) the length of the required service period;
       ``(ii) the amount of the bonus;
       ``(iii) the method of payment; and
       ``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (d) and (e) and regulations 
     of the Office.
       ``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       ``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       ``(ii) the effect of the termination.
       ``(3) The agreement shall be made effective upon employment 
     with the agency or movement to a new position or geographic 
     area, as applicable, except that a service agreement with 
     respect to a recruitment bonus may be made effective at a 
     later date under circumstances described in regulations of 
     the Office, such as when there is an initial period of formal 
     basic training.
       ``(d)(1) Except as provided in subsection (e), a bonus 
     under this section shall not exceed 25 percent of the annual 
     rate of basic pay of the employee at the beginning of the 
     service period multiplied by the number of years (or 
     fractions thereof) in the service period, not to exceed 4 
     years.
       ``(2) A bonus under this section may be paid as an initial 
     lump sum, in installments, as a final lump sum upon the 
     completion of the full service period, or in a combination of 
     these forms of payment.
       ``(3) A bonus under this section is not part of the basic 
     pay of an employee for any purpose.
       ``(4) Under regulations of the Office, a recruitment bonus 
     under this section may be paid to an eligible individual 
     before that individual enters on duty.
       ``(e) The Office may authorize the head of an agency to 
     waive the limitation under subsection (d)(1) based on a 
     critical agency need, subject to regulations prescribed by 
     the Office. Under such a waiver, the amount of the bonus may 
     be up to 50 percent of the employee's annual rate of basic 
     pay at the beginning of the service period multiplied by the 
     number of years (or fractions thereof) in the service period, 
     not to exceed 100 percent of the employee's annual rate of 
     basic pay at the beginning of the service period.
       ``(f) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying recruitment bonuses and a plan for paying relocation 
     bonuses, subject to regulations prescribed by the Office.
       ``(g) The Office may prescribe regulations to carry out 
     this section, including regulations relating to the repayment 
     of a recruitment or relocation bonus in appropriate 
     circumstances when the agreed-upon service period has not 
     been completed.
       ``(h)(1) At the request of the head of an Executive agency, 
     the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       ``(2) A bonus may not be paid under this section to an 
     individual who is appointed to, or who holds--
       ``(A) a position to which an individual is appointed by the 
     President, by and with the advice and consent of the Senate;
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined under section 
     3132(a)); or
       ``(C) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character.
       ``(i)(1) The Office of Personnel Management shall submit an 
     annual report on bonuses paid under this section to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       ``(2) Each report submitted under this subsection shall 
     include the use by each agency of recruitment and relocation 
     bonuses, including, with respect to each agency and each type 
     of bonus, the number and amount of bonuses by grade 
     (including the General Schedule, the Senior Executive 
     Service, and positions on the Executive Schedule).
       ``(j)(1) An individual may not be paid a recruitment bonus 
     under this section and a recruitment bonus under section 
     5753.
       ``(2) An individual may not be paid a relocation bonus 
     under this section and a relocation bonus under section 5753.

     ``Sec. 5754b. Retention bonuses

       ``(a) In this section, the term `employee' has the meaning 
     given that term under section 2105, except that such term 
     also includes an employee described in subsection (c) of that 
     section.
       ``(b) The Office of Personnel Management may authorize the 
     head of an agency to pay a retention bonus to an employee, 
     subject to regulations prescribed by the Office, if--
       ``(1) the unusually high or unique qualifications of the 
     employee or a special need of the agency for the employee's 
     services makes it essential to retain the employee; and
       ``(2) the agency determines that, in the absence of a 
     retention bonus, the employee would be likely to leave--
       ``(A) the Federal service; or
       ``(B) for a different position in the Federal service under 
     conditions described in regulations of the Office.
       ``(c) The Office may authorize the head of an agency to pay 
     retention bonuses to a group of employees in 1 or more 
     categories of positions in 1 or more geographic areas, 
     subject to the requirements of subsection (b)(1) and 
     regulations prescribed by the Office, if there is a high risk 
     that a significant portion of employees in the group would be 
     likely to leave in the absence of retention bonuses.
       ``(d) Except as provided in subsection (j), a bonus may be 
     paid only to an employee covered by the General Schedule pay 
     system established under subchapter III of chapter 53.
       ``(e)(1) Payment of a retention bonus is contingent upon 
     the employee entering into a written service agreement with 
     the agency to complete a period of employment with the 
     agency.
       ``(2)(A) The agreement shall include--
       ``(i) the length of the required service period;
       ``(ii) the amount of the bonus;
       ``(iii) the method of payment; and
       ``(iv) other terms and conditions under which the bonus is 
     payable, subject to subsections (f) and (g) and regulations 
     of the Office.
       ``(B) The terms and conditions for paying a bonus, as 
     specified in the service agreement, shall include--
       ``(i) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed; and
       ``(ii) the effect of the termination.
       ``(3)(A) Notwithstanding paragraph (1), a written service 
     agreement is not required if

[[Page 6926]]

     the agency pays a retention bonus in biweekly installments 
     and sets the installment payment at the full bonus percentage 
     rate established for the employee with no portion of the 
     bonus deferred.
       ``(B) If an agency pays a retention bonus in accordance 
     with subparagraph (A) and makes a determination to terminate 
     the payments, the agency shall provide written notice to the 
     employee of that determination. Except as provided in 
     regulations of the Office, the employee shall continue to be 
     paid the retention bonus through the end of the pay period in 
     which such written notice is provided.
       ``(4) A retention bonus for an employee may not be based on 
     any period of such service which is the basis for a 
     recruitment or relocation bonus under section 5753 or 5754a.
       ``(f)(1) Except as provided in subsection (g), a retention 
     bonus, which shall be stated as a percentage of the 
     employee's basic pay for the service period associated with 
     the bonus, may not exceed--
       ``(A) 25 percent of the employee's basic pay if paid under 
     subsection (b); or
       ``(B) 10 percent of an employee's basic pay if paid under 
     subsection (c).
       ``(2) A retention bonus may be paid to an employee in 
     installments after completion of specified periods of service 
     or in a single lump sum at the end of the full period of 
     service required by the agreement. An installment payment may 
     not exceed the product derived from multiplying the amount of 
     basic pay earned in the installment period by a percentage 
     not to exceed the bonus percentage rate established for the 
     employee. If the installment payment percentage is less than 
     the bonus percentage rate, the accrued but unpaid portion of 
     the bonus is payable as part of the final installment payment 
     to the employee after completion of the full service period 
     under the terms of the service agreement.
       ``(3) A retention bonus is not part of the basic pay of an 
     employee for any purpose.
       ``(g) Upon the request of the head of an agency, the Office 
     may waive the limit established under subsection (f)(1) and 
     permit the agency head to pay an otherwise eligible employee 
     or category of employees retention bonuses of up to 50 
     percent of basic pay, based on a critical agency need.
       ``(h) The Office shall require that, before paying a bonus 
     under this section, an agency shall establish a plan for 
     paying retention bonuses, subject to regulations prescribed 
     by the Office.
       ``(i) The Office may prescribe regulations to carry out 
     this section.
       ``(j)(1) At the request of the head of an Executive agency, 
     the Office may extend coverage under this section to 
     categories of employees within the agency who otherwise would 
     not be covered by this section.
       ``(2) A bonus may not be paid under this section to an 
     employee who holds--
       ``(A) a position to which an individual is appointed by the 
     President, by and with the advice and consent of the Senate;
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined under section 
     3132(a)); or
       ``(C) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character.
       ``(k)(1) The Office of Personnel Management shall submit an 
     annual report on bonuses paid under this section to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       ``(2) Each report submitted under this subsection shall 
     include the use by each agency of retention bonuses, 
     including, with respect to each agency, the number and amount 
     of bonuses by grade (including the General Schedule, the 
     Senior Executive Service, and positions on the Executive 
     Schedule).
       ``(l) An employee may not be paid a retention bonus under 
     this section and a retention allowance under section 5754.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 57 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5754 
     the following:

``5754a. Recruitment and relocation bonuses.
``5754b. Retention bonuses.''.

       (b) Effective Date and Application.--This section shall 
     take effect on the first day of the first applicable pay 
     period beginning on or after 180 days after the date of 
     enactment of this Act.

     SEC. 102. STREAMLINED CRITICAL PAY AUTHORITY.

       Section 5377 of title 5, United States Code, is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) The Office of Personnel Management, in consultation 
     with the Office of Management and Budget, may, upon the 
     request of the head of an agency, grant authority to fix the 
     rate of basic pay for 1 or more positions in such agency in 
     accordance with this section.'';
       (2) in subsection (e)(1), by striking ``Office of 
     Management and Budget'' and inserting ``Office of Personnel 
     Management'';
       (3) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) The Office of Personnel Management may not authorize 
     the exercise of authority under this section with respect to 
     more than 800 positions at any 1 time, of which not more than 
     30 may, at any such time, be positions the rate of basic pay 
     for which would otherwise be determined under subchapter II.
       ``(g) The Office of Personnel Management shall consult with 
     the Office of Management and Budget before making any 
     decision to grant or terminate any authority under this 
     section.''; and
       (4) in subsection (h), by striking ``The Office of 
     Management and Budget shall report to the Committee on Post 
     Office and Civil Service'' and inserting ``The Office of 
     Personnel Management shall report to the Committee on 
     Government Reform.''.

     SEC. 103. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR 
                   PART-TIME SERVICE.

       Section 8339(p) of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(3) In the administration of paragraph (1)--
       ``(A) subparagraph (A) of such paragraph shall apply to any 
     service performed before, on, or after April 7, 1986;
       ``(B) subparagraph (B) of such paragraph shall apply to all 
     service performed on a part-time or full-time basis on or 
     after April 7, 1986; and
       ``(C) any service performed on a part-time basis before 
     April 7, 1986, shall be credited as service performed on a 
     full-time basis.''.

     SEC. 104. RETIREMENT SERVICE CREDIT FOR CADET OR MIDSHIPMAN 
                   SERVICE.

       (a) Civil Service Retirement System.--Section 8331(13) of 
     title 5, United States Code, is amended by striking ``but'' 
     and inserting ``and includes service as a cadet at the United 
     States Military Academy, the United States Air Force Academy, 
     or the United States Coast Guard Academy, or as a midshipman 
     at the United States Naval Academy, but''.
       (b) Federal Employees' Retirement System.--Section 8401(31) 
     of title 5, United States Code, is amended by striking 
     ``but'' and inserting ``and includes service as a cadet at 
     the United States Military Academy, the United States Air 
     Force Academy, or the United States Coast Guard Academy, or 
     as a midshipman at the United States Naval Academy, but''.
       (c) Effective Date and Application.--The amendments made by 
     this section shall apply to--
       (1) any annuity, eligibility for which is based upon a 
     separation occurring before, on, or after the date of 
     enactment of this Act; and
       (2) any period of service as a cadet or midshipman at the 
     military service academy of the Army, Air Force, Coast Guard, 
     or Navy, occurring before, on, or after the date of enactment 
     of this Act.

     SEC. 105. SENIOR EXECUTIVE SERVICE AUTHORITY FOR WHITE HOUSE 
                   OFFICE OF ADMINISTRATION.

       Chapter 2 of title 3, United States Code, is amended--
       (1) in section 107(b)--
       (A) in paragraph (2), in the first sentence, by striking 
     ``section 3101'' and inserting ``sections 3101 and 3132''; 
     and
       (B) by adding at the end the following:
       ``(3) Any permanent Senior Executive Service position 
     established under paragraph (2) shall be a career reserved 
     position.'';
       (2) in section 114--
       (A) by redesignating that section as subsection (a);
       (B) by amending that subsection, as so redesignated, by 
     striking ``minimum rate of basic pay then currently paid for 
     GS-16'' and inserting ``maximum rate of basic pay then 
     currently paid for GS-15''; and
       (C) by adding at the end the following:
       ``(b) The limitation established in subsection (a) shall 
     not apply to an individual appointed under the authority in 
     section 107(b)(2), in accordance with section 3132 of title 
     5.''.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

     SEC. 201. AGENCY TRAINING.

       (a) Training To Accomplish Performance Plans and Strategic 
     Goals.--Section 4103 of title 5, United States Code, is 
     amended by adding at the end the following:
       ``(c) The head of each agency shall--
       ``(1) evaluate each program or plan established, operated, 
     or maintained under subsection (a) with respect to 
     accomplishing specific performance plans and strategic goals 
     in performing the agency mission; and
       ``(2) modify such program or plan to accomplish such plans 
     and goals.''.
       (b) Agency Training Officer; Specific Training Programs.--
       (1) In general.--Chapter 41 of title 5, United States Code, 
     is amended by adding after section 4119 the following:

     ``Sec. 4120. Agency training officer

       ``Each agency shall appoint or designate a training officer 
     who shall be responsible for developing, coordinating, and 
     administering training for the agency.

     ``Sec. 4121. Specific training programs

       ``In consultation with the Office of Personnel Management, 
     each head of an agency shall establish--
       ``(1) a comprehensive management succession program to 
     provide training to employees to develop managers for the 
     agency; and
       ``(2) a program to provide training to managers on actions, 
     options, and strategies a manager may use in--

[[Page 6927]]

       ``(A) relating to employees with unacceptable performances; 
     and
       ``(B) mentoring employees and improving employee 
     performance and productivity.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 41 of title 5, United States Code, is 
     amended by adding at the end the following:

``4120. Agency training officer.
``4121. Specific training programs.''.

     SEC. 202. ANNUAL LEAVE ENHANCEMENTS.

       (a) Accrual of Leave for Newly Hired Federal Employees With 
     Qualified Experience.--
       (1) In general.--Section 6303 of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(e)(1) In this subsection, the term `period of qualified 
     non-Federal career experience' means any equal period of 
     service performed by an individual that--
       ``(A) except for this subsection would not otherwise be 
     service performed by an employee for purposes of subsection 
     (a); and
       ``(B) was performed in a position--
       ``(i) the duties of which were directly related to the 
     duties of the position in an agency that such individual 
     holds; and
       ``(ii) which meets such other conditions as the Office of 
     Personnel Management shall prescribe by regulation.
       ``(2) For purposes of subsection (a), the head of an agency 
     may deem a period of qualified non-Federal career experience 
     performed by an individual to be a period of service 
     performed as an employee.''.
       (2) Effective date.--This section shall take effect 120 
     days after the date of enactment of this Act and shall only 
     apply to an individual hired on or after that effective date.
       (b) Senior Executive Service Annual Leave Enhancements.--
       (1) In general.--Section 6303(a) of title 5, United States 
     Code, is amended--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding after paragraph (3) the following:
       ``(4) one day for each full biweekly pay period for an 
     employee in a position paid under section 5376 or 5383, or 
     for an employee in an equivalent category for which the 
     minimum rate of basic pay is greater than the rate payable at 
     GS-15, step 10.''.
       (2) Regulations.--Not later than 120 days after the date of 
     enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations to carry out the amendments made 
     by this subsection.
       (3) Effective dates.--
       (A) In general.--Paragraph (1) shall take effect 120 days 
     after the date of enactment of this Act.
       (B) Regulations.--Paragraph (2) shall take effect on the 
     date of enactment of this Act.

     SEC. 203. COMPENSATORY TIME OFF FOR TRAVEL.

       (a) In General.--Subchapter V of chapter 55 of title 5, 
     United States Code, is amended by adding at end the 
     following:

     ``Sec. 5550b. Compensatory time off for travel

       ``(a) Notwithstanding section 5542(b)(2), each hour spent 
     by an employee in travel status away from the official duty 
     station of the employee, that is not otherwise compensable, 
     shall be treated as an hour of work or employment for 
     purposes of calculating compensatory time off.
       ``(b) An employee who has any hours treated as hours of 
     work or employment for purposes of calculating compensatory 
     time under subsection (a), shall not be entitled to payment 
     for any such hours that are unused as compensatory time.
       ``(c) Not later than 30 days after the date of enactment of 
     this section, the Office of Personnel Management shall 
     prescribe regulations to implement this section.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 55 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5550a 
     the following:

``5550b. Compensatory time off for travel.''.

                          ____________________